Asian Equities Head Lower On Hawkish Powell Comments

Regional Asian equities are lower today, with Japanese equities the worst performers. The yen remains front and center as investors watch closely for any intervention from the BoJ, while comments from Fed Chair Jerome Powell indicated that policymakers will wait longer then expected before cutting interest rate due to a string of unexpectedly high inflation reports. New Zealand CPI was in line with expectations at 4%, which is the lowest figure in almost three years, there is little else on the economic calendar for the remainder of the day in Asia.

• Japanese stocks opened slightly higher, but have quickly turned negative as investors weigh the implications of Jerome Powell's remarks on the Federal Reserve's future interest rate adjustments and watch for any risk of currency intervention. The yen remains stable at trading around 154.70 after experiencing a sudden and brief rally overnight. While a weakening yen, currently at a three-decade low, could benefit exporters, there is mounting unease about the speed of its decline and the currency's volatility. The Topix is down 1.10% at 2,668, while the Nikkei fares slightly better down 0.50% at 38,288.
• South Korea’s Kospi is lower today down 0.53%, local yields are higher with the KTB 10Y above 3.60% for the first time since mid-December, while the KRW is off lows now trading at 1,389.70.
• Taiwan equities are slightly higher in early morning trading with the Taiex up 0.40%, after a 2.70% drop on Tuesday. Foreign investors have been selling Taiwanese stocks with the Taiex and now off 4.50% over the past week after failing to break the 20,800 level and now trades below the 20-day EMA at 20,100
• Australian equities are unchanged in early morning trading, gains in Financials are being offset by loses in Mining and Health Care names. Earlier Westpac Leading Index fell to -0.05% in March from 0.08% in Feb. The ASX200 is off 3.60% from recent highs and hovers just above support at 7,600.
• Elsewhere in SEA, New Zealand Equities are unchanged after CPI data fell to 4%, the weakest reading in almost three years.